ALISO VIEJO, Calif. — (BUSINESS WIRE) — April 30, 2015 —
QLogic
Corp. (Nasdaq:
QLGC), a leading supplier of high performance network
infrastructure solutions, today announced its financial results for the
fourth quarter and fiscal year ended March 29, 2015.

Fourth Quarter Highlights

Net revenue: $133.0 million

GAAP net income: $11.1 million or $0.13 per diluted share

Non-GAAP net income: $24.9 million or $0.28 per diluted share

Cash and marketable securities: $316.4 million as of March 29, 2015

Cash generated from operations: $45.2 million

Fiscal Year Highlights

Net revenue: $520.2 million

GAAP net income: $50.6 million or $0.57 per diluted share

Non-GAAP net income: $97.0 million or $1.10 per diluted share

GAAP operating income: $54.4 million

Non-GAAP operating income: $106.8 million

Operating margin: 10.5% GAAP, 20.5% non-GAAP

Net revenue for the fourth quarter of fiscal 2015 was $133.0 million and
increased 15% from $115.7 million in the same quarter last year. Revenue
from Advanced Connectivity Platforms was $120.7 million during the
fourth quarter of fiscal 2015 and increased 19% from $101.1 million in
the same quarter last year.

Net income on a GAAP basis for the fourth quarter of fiscal 2015
increased to $11.1 million, or $0.13 per diluted share, from a net loss
of $46.8 million, or $0.54 per diluted share, for the fourth quarter of
fiscal 2014. Net income on a non-GAAP basis for the fourth quarter of
fiscal 2015 increased 20% to $24.9 million, or $0.28 per diluted share,
from $20.8 million, or $0.24 per diluted share, for the fourth quarter
of fiscal 2014.

Net revenue for fiscal 2015 was $520.2 million and increased 13% from
$460.9 million in fiscal 2014. Revenue from Advanced Connectivity
Platforms was $465.0 million during fiscal 2015 and increased 20% from
$386.7 million in fiscal 2014. Net income on a GAAP basis for fiscal
2015 increased to $50.6 million, or $0.57 per diluted share, from a net
loss of $18.3 million, or $0.21 per diluted share, in fiscal 2014. Net
income on a non-GAAP basis for fiscal 2015 increased to $97.0 million,
or $1.10 per diluted share, from $82.8 million, or $0.94 per diluted
share, in fiscal 2014.

“I am very pleased with our achievements during the fourth quarter and
for the full year of fiscal 2015. We accomplished a great deal,
including expansion of our market share position for both our Fibre
Channel and Ethernet products1. In addition, during fiscal
2015, we were the first to sample the next generation 25/40/50/100Gb
Ethernet controllers to customers that serve the enterprise and Cloud
markets,” said Prasad Rampalli, president and chief executive officer,
QLogic. “From a financial perspective, our revenue during fiscal 2015
increased by 13% over fiscal 2014 and our operating income and earnings
per share expanded at even higher growth rates. Our focus on server and
storage connectivity provides us excellent leverage from both a product
development and customer engagement standpoint. I believe that as we
continue to execute on our strategy, we are well positioned to deliver
on our top and bottom line growth plans in the coming year.”

QLogic uses certain non-GAAP financial measures to supplement financial
statements based on GAAP. A summary of these non-GAAP financial measures
and a reconciliation of each non-GAAP financial measure to the most
directly comparable GAAP financial measure, as well as a description of
the reasons that management believes that these non-GAAP financial
measures provide useful information to investors and the additional
purposes for which management uses these non-GAAP financial measures, is
presented in the accompanying financial schedules.

QLogic’s fourth quarter fiscal 2015 conference call is scheduled for
today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Prasad
Rampalli, president and chief executive officer, and Jean Hu, senior
vice president and chief financial officer, will host the conference
call. The call is being webcast live via the Internet at
http://ir.qlogic.com
and will include certain prepared materials. Phone access to participate
in the conference call is available at (800) 334-0872, passcode: 3610509.

The financial information and the prepared materials that the company
intends to discuss during the conference call will be available on the
company’s website at
http://ir.qlogic.com
for twelve months following the conference call. A replay of the webcast
will be available at
http://ir.qlogic.com
for twelve months.

_______________
1 Based on calendar year 2014 reports
from the Dell’Oro Group and Crehan Research

Follow QLogic @ twitter.com/qlogic

QLogic – the Ultimate in Performance

QLogic
(Nasdaq:
QLGC) is a global leader and technology innovator in high
performance server and storage networking connectivity products. Leading
OEMs and channel partners worldwide rely on QLogic for their server and
storage networking solutions. For more information, visit
www.qlogic.com.

Disclaimer – Forward-Looking Statements

This press release contains statements relating to future results of
the company (including certain beliefs and projections regarding
business and market trends, as well as our belief that our focus on
server and storage connectivity provides us excellent leverage from both
a product development and customer engagement standpoint, our belief
that we will continue to execute on our strategy, and that, if we
execute on our strategy, we are well positioned to deliver on our top
and bottom line growth plans in the coming year) that are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
subject to risks and uncertainties that could cause actual results to
differ materially from those projected or implied in the forward-looking
statements. The company advises readers that these potential risks and
uncertainties include, but are not limited to: potential fluctuations in
operating results; gross margins that may vary over time; unfavorable
economic conditions; the stock price of the company may be volatile; the
company's dependence on the networking markets served; the ability to
maintain and gain market or industry acceptance of the company's
products; the company's dependence on a small number of customers; the
company's ability to compete effectively with other companies; uncertain
benefits from strategic business combinations, acquisitions and
divestitures;the ability to attract and retain key personnel;
the complexity of the company's products; declining average unit sales
prices of comparable products; the company's dependence on sole source
and limited source suppliers; the company's dependence on relationships
with certain third-party subcontractors and contract manufacturers;
sales fluctuations arising from customer transitions to new products;
seasonal fluctuations and uneven sales patterns in orders from
customers; changes in the company's tax provisions or adverse outcomes
resulting from examination of its income tax returns; international
economic, currency, regulatory, political and other risks; facilities of
the company and its suppliers and customers are located in areas subject
to natural disasters; the ability to protect proprietary rights; the
ability to satisfactorily resolve any infringement claims; a reduction
in sales efforts by current distributors; declines in the market value
of the company's marketable securities; changes in and compliance with
regulations; difficulties in transitioning to smaller geometry process
technologies; the use of "open source" software in the company's
products; system security risks, data protection breaches and
cyber-attacks; and the company’s ability to borrow under its credit
agreement is subject to certain covenants.

More detailed information on these and additional factors that could
affect the company's operating and financial results are described in
the company's Forms 10-K, 10-Q and other reports filed, or to be filed,
with the Securities and Exchange Commission. The company urges all
interested parties to read these reports to gain a better understanding
of the business and other risks that the company faces. The
forward-looking statements contained in this press release are made only
as of the date hereof, and the company does not intend to update or
revise these forward-looking statements, whether as a result of new
information, future events or otherwise.

QLogic and the QLogic logo are registered trademarks of QLogic
Corporation. Other trademarks and registered trademarks are the property
of the companies with which they are associated.

QLOGIC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited — in thousands, except per share amounts)

Three Months Ended

Year Ended

March 29,

March 30,

March 29,

March 30,

2015

2014

2015

2014

Net revenues

$

133,043

$

115,720

$

520,198

$

460,907

Cost of revenues

55,497

39,422

214,146

150,800

Gross profit

77,546

76,298

306,052

310,107

Operating expenses:

Engineering and development

36,157

36,598

144,260

147,010

Sales and marketing

16,690

16,410

64,330

68,367

General and administrative

7,238

9,399

32,512

32,097

Special charges

5,648

56,524

10,520

74,853

Total operating expenses

65,733

118,931

251,622

322,327

Operating income (loss)

11,813

(42,633

)

54,430

(12,220

)

Interest and other income, net

594

1,492

763

3,260

Income (loss) before income taxes

12,407

(41,141

)

55,193

(8,960

)

Income taxes

1,259

5,638

4,600

9,306

Net income (loss)

$

11,148

$

(46,779

)

$

50,593

$

(18,266

)

Net income (loss) per share:

Basic

$

0.13

$

(0.54

)

$

0.58

$

(0.21

)

Diluted

$

0.13

$

(0.54

)

$

0.57

$

(0.21

)

Number of shares used in per share calculations:

Basic

87,298

87,017

87,584

87,612

Diluted

88,969

87,017

88,463

87,612

QLOGIC CORPORATION

RECONCILIATION OF GAAP NET INCOME (LOSS) TO

NON-GAAP NET INCOME

(unaudited — in thousands, except per share amounts)

Three Months Ended

Year Ended

March 29,

March 30,

March 29,

March 30,

2015

2014

2015

2014

GAAP net income (loss)

$

11,148

$

(46,779

)

$

50,593

$

(18,266

)

Items excluded from GAAP net income (loss):

Stock-based compensation

5,367

4,591

20,545

22,638

Amortization of acquisition-related intangible assets

4,382

1,408

17,299

2,138

Amortization of license fee

718

133

2,828

133

Acquisition-related charges

—

1,517

1,226

1,517

Special charges

5,648

56,524

10,520

74,853

Gains recognized on previously impaired investment securities

—

(425

)

—

(425

)

Income tax effects

(2,412

)

3,783

(6,024

)

219

Total non-GAAP adjustments

13,703

67,531

46,394

101,073

Non-GAAP net income

$

24,851

$

20,752

$

96,987

$

82,807

Net income (loss) per diluted share:

GAAP net income (loss)

$

0.13

$

(0.54

)

$

0.57

$

(0.21

)

Adjustments

0.15

0.78

0.53

1.15

Non-GAAP net income

$

0.28

$

0.24

$

1.10

$

0.94

Number of shares used in non-GAAP per diluted share calculations

88,969

87,819

88,463

88,111

Non-GAAP Financial Measures

The non-GAAP financial measures contained herein are a supplement to the
corresponding financial measures prepared in accordance with generally
accepted accounting principles (GAAP). The non-GAAP financial measures
presented exclude the items summarized in the above table. Management
believes that adjustments for these items assist investors in making
comparisons of period-to-period operating results and that these items
are not indicative of the company’s on-going core operating performance.

The company has presented non-GAAP net income and non-GAAP net income
per diluted share, on a basis consistent with its historical
presentation, to assist investors in understanding the company’s core
net income and core net income per diluted share on an on-going basis.
These non-GAAP financial measures may also assist investors in making
comparisons of the company’s core net profitability with historical
periods and comparisons of the company’s core net profitability with the
corresponding results for competitors. Management believes that non-GAAP
net income and non-GAAP net income per diluted share are important
measures in the evaluation of the company’s profitability. These
non-GAAP financial measures exclude the adjustments described in the
above table, and thus provide an overall measure of the company’s
on-going net profitability and related profitability on a per diluted
share basis.

Management uses non-GAAP net income and non-GAAP net income per diluted
share in its evaluation of the company’s core after-tax results of
operations and trends between fiscal periods and believes that these
measures are important components of its internal performance
measurement process. In addition, the company prepares and maintains its
budgets and forecasts for future periods on a basis consistent with
these non-GAAP financial measures. Management believes that providing
these non-GAAP financial measures allows investors to view the company’s
financial results in the way that management views the financial results.

The non-GAAP financial measures presented herein have certain
limitations in that they do not reflect all of the costs associated with
the operations of the company’s business as determined in accordance
with GAAP. Therefore, investors should consider non-GAAP financial
measures in addition to, and not as a substitute for, or as superior to,
measures of financial performance prepared in accordance with GAAP. The
non-GAAP financial measures presented by the company may be different
from the non-GAAP financial measures used by other companies.

For additional information on the items excluded from the non-GAAP
financial measures and why the company believes that these non-GAAP
financial measures provide useful supplemental information to investors,
the company refers you to the Form 8-K regarding this release filed
today with the Securities and Exchange Commission.

A summary of the non-GAAP adjustments presented in the table above by
the financial statement line impacted is as follows:

(unaudited – in thousands)

Three Months Ended

Year Ended

March 29,

March 30,

March 29,

March 30,

2015

2014

2015

2014

Non-GAAP Adjustments:

Cost of revenues:

Stock-based compensation

$

178

$

267

$

1,049

$

1,349

Amortization of acquisition-related intangible assets

4,213

1,408

16,596

2,138

Amortization of license fee

718

133

2,828

133

Acquisition-related charges

—

802

1,226

802

Total cost of revenue adjustments

5,109

2,610

21,699

4,422

Operating expenses:

Engineering and development:

Stock-based compensation

2,501

1,848

10,024

10,918

Sales and marketing:

Stock-based compensation

1,366

1,063

4,631

5,337

Amortization of acquisition-related intangible assets

169

—

703

—

General and administrative:

Stock-based compensation

1,322

1,413

4,841

5,034

Acquisition-related charges

—

715

—

715

Special charges

5,648

56,524

10,520

74,853

Total operating expense adjustments

11,006

61,563

30,719

96,857

Interest and other income:

Gains recognized on previously impaired investment securities

—

(425

)

—

(425

)

Total non-GAAP adjustments before income taxes

16,115

63,748

52,418

100,854

Income tax effects

(2,412

)

3,783

(6,024

)

219

Total non-GAAP adjustments

$

13,703

$

67,531

$

46,394

$

101,073

QLOGIC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited — in thousands)

March 29,

March 30,

2015

2014

ASSETS

Current assets:

Cash and cash equivalents

$

115,241

$

91,258

Marketable securities

201,174

186,783

Total cash and marketable securities

316,415

278,041

Accounts receivable, net

87,436

65,213

Inventories

29,978

18,036

Deferred tax assets

12,545

15,080

Other current assets

21,802

16,590

Total current assets

468,176

392,960

Property and equipment, net

78,501

86,527

Goodwill

167,232

167,232

Purchased intangible assets, net

77,659

95,163

Deferred tax assets

36,335

32,827

Other assets

20,752

23,554

$

848,655

$

798,263

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

40,497

$

30,657

Accrued compensation

22,476

26,956

Accrued taxes

2,711

981

Deferred revenue

3,359

3,954

Other current liabilities

8,359

16,123

Total current liabilities

77,402

78,671

Accrued taxes

14,516

17,095

Other liabilities

9,721

9,071

Total liabilities

101,639

104,837

Stockholders’ equity:

Common stock

215

214

Additional paid-in capital

983,579

958,008

Retained earnings

1,722,664

1,672,071

Accumulated other comprehensive income (loss)

(99

)

435

Treasury stock

(1,959,343

)

(1,937,302

)

Total stockholders’ equity

747,016

693,426

$

848,655

$

798,263

QLOGIC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited — in thousands)

Year Ended

March 29,

March 30,

2015

2014

Cash flows from operating activities:

Net income (loss)

$

50,593

$

(18,266

)

Adjustments to reconcile net income (loss) to net cash provided by
operating activities: